SoFi Introduces No-Fee Options Trading for Beginner Investors

SoFi Technologies is rolling out no-fee options trading for retail investors who are new to the market. The service will be available to all eligible SoFi Invest members in coming weeks, providing a low-cost and accessible option for beginners to trade options. This move aims to expand SoFi's offerings and attract new customers to its platform.

SoFi Technologies (NASDAQ: SOFI) has announced the rollout of no-fee options trading for retail investors who are new to the market. The service, set to be available to all eligible SoFi Invest members in the coming weeks, aims to provide a low-cost and accessible option for beginners to trade options. This move is part of SoFi's strategy to expand its offerings and attract new customers to its platform.

The new options trading feature, known as Options Level 1, includes foundational strategies such as covered calls and cash-secured puts. These strategies are designed to be suitable for beginners and are being offered with no commissions, no contract fees, and no fees for options exercise and assignment. SoFi is also providing educational resources through its app to help members understand how options work and the associated risks.

"One of the most consistent requests we heard from SoFi Invest members was access to Options Level 1," said Anthony Noto, CEO of SoFi. "By expanding access to options trading and embedding education directly into the experience, members can responsibly diversify their strategies and pursue their long-term financial goals with confidence."

SoFi's expansion into options trading follows a year of growth in its investment offerings, which include access to private markets, alternative funds, and a relaunched robo-advisor in partnership with BlackRock. The company has seen significant growth, with its stock surging over 230% in the past year and revenue increasing by 29% year-over-year.

SoFi has also announced plans to expand its options trading capabilities with additional levels and strategies, options trading in IRAs, and zero day to expiration contracts. The company expects to enhance tools for options screening, strategy building, and profit calculations in the future.

The rollout of no-fee options trading comes as SoFi's competitors, such as Charles Schwab (SCHW) and Fidelity, have already been offering level 1 options trading. By eliminating fees and providing educational tools, SoFi is lowering some barriers to options trading for its customers. However, SoFi emphasized that options trading involves significant risk and is not suitable for all investors.

SoFi Technologies has seen several significant developments recently. Needham has raised its price target for SoFi Technologies to $29 from $25, maintaining a Buy rating. SoFi's CEO, Anthony Noto, entered into a prepaid variable forward contract involving 1.5 million shares of the company's stock. Additionally, SoFi announced a partnership with Lightspark to launch blockchain-enabled international money transfers through the SoFi app. William Blair has reiterated its Outperform rating on SoFi, expressing confidence in the company's growth outlook after meetings with its leadership.

Shares of SoFi rose around 1% on Thursday and have gained close to 70% year-to-date.